NEW YORK (TheStreet) -- CF Industries Holdings (CF) - Get Report stock is taking a hit, down 2.22% to $31.23 on Monday morning after Piper Jaffray slashed its rating to "neutral" from "overweight" yesterday and lowered its price target to $34 from $40, citing several risks.
"We believe nutrient pricing will be under pressure following the spring demand season and we see additional risk to pricing through the rest of the year with increased production coming online in North America," analysts said.
Even though there's potential opportunity for share buybacks, the firm does not see incremental stock buyers if nitrogen fertilizer prices are not going up.
Given numerous challenges including volatile commodity prices, cyclical business environment, competition and government and environmental regulation, analysts are siding with the bears for now.
Based in Deerfield, IL, CF Industries and distributes nitrogen fertilizer with production in North America.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CF